Cambium Learning Group, Inc. (ABCD) has reported a 94.71 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $3.83 million, or $0.08 a share in the quarter, compared with $1.97 million, or $0.04 a share for the same period last year.
Revenue during the quarter grew 4.40 percent to $42.11 million from $40.34 million in the previous year period. Gross margin for the quarter expanded 117 basis points over the previous year period to 67.57 percent. Total expenses were 86.04 percent of quarterly revenues, down from 86.24 percent for the same period last year. This has led to an improvement of 20 basis points in operating margin to 13.96 percent.
Operating income for the quarter was $5.88 million, compared with $5.55 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.84 million compared with $11.38 million in the prior year period. At the same time, adjusted EBITDA margin improved 229 basis points in the quarter to 30.49 percent from 28.20 percent in the last year period.
"In the important back-to-school third quarter, consolidated Bookings, Adjusted EBITDA and Cash Income all accelerated to achieve overall growth for the first nine months of the year," said John Campbell, chief executive officer of Cambium Learning Group. "Learning A-Z and ExploreLearning, our 100% digital segments, continue to extend their track records of growth, each expanding Bookings 20% year-to-date. Learning A-Z, the standard bearer of our digitally-enabled positioning, is now our largest segment in terms of Bookings. While we are refining our full-year outlook to reflect Voyager Sopris Learning’s current pace of change, our results show increasing demand for our solutions that are personalized, adaptive, scalable, and designed to achieve results in the classroom, and we are on track to deliver a year of top-line growth and profitability expansion."
Working capital remains negative
Working capital of Cambium Learning Group, Inc. was negative $49.88 million on Sep. 30, 2016 compared with negative $12.65 million on Sep. 30, 2015. Current ratio was at 0.54 as on Sep. 30, 2016, down from 0.86 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 45 days for the quarter from 67 days for the last year period. Days sales outstanding went down to 51 days for the quarter compared with 53 days for the same period last year.
Days inventory outstanding has decreased to 10 days for the quarter compared with 34 days for the previous year period. At the same time, days payable outstanding went down to 17 days for the quarter from 20 for the same period last year.
Debt comes down significantly
Cambium Learning Group, Inc. has recorded a decline in total debt over the last one year. It stood at $99.53 million as on Sep. 30, 2016, down 29.43 percent or $41.51 million from $141.04 million on Sep. 30, 2015. Total debt was 62.41 percent of total assets as on Sep. 30, 2016, compared with 75.92 percent on Sep. 30, 2015.
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